FMP
May 20, 2024 6:50 AM - Parth Sanghvi
In light of ongoing macroeconomic uncertainties, UBS analysts have advised investors to consider portfolio hedges. While traditionally, gold has served as a reliable safe-haven asset, analysts caution about potential short-term headwinds that could impact its performance.
Despite the current challenges, UBS maintains a bullish long-term outlook on gold. The analysts noted that if market expectations for Federal Reserve rate cuts diminish, gold prices could face downward pressure. Spot gold prices ended the week at $2,413.93 per ounce.
However, UBS is optimistic about gold's future, forecasting prices to reach $2,500 per ounce by the end of 2024. This positive outlook is bolstered by strong central bank and investor demand. Additionally, gold's role as a geopolitical hedge has significantly contributed to its price rise this year, offering diversification and reducing overall portfolio volatility.
UBS also emphasizes the importance of oil as a hedge against specific geopolitical risks. With the potential for escalating conflicts in the Middle East, oil prices are expected to remain elevated. UBS projects Brent crude to trade at $91 per barrel in the coming months, driven by robust demand and efforts by OPEC+ countries to maintain market balance.
In an environment of macroeconomic uncertainty, UBS advises investors to consider hedging their portfolios with assets like gold and oil. While short-term headwinds may impact gold prices, the long-term outlook remains positive due to strong demand and its role as a geopolitical hedge. Similarly, oil prices are expected to stay high due to geopolitical tensions and market dynamics.
Stay updated with the latest stock news and sentiment analysis using the Stock News Sentiments RSS Feed API. Get real-time insights on market trends and make informed investment decisions today!
Jan 16, 2024 4:18 PM - Samuel Abdelshahid
In the hustle and bustle of the trading world, having a trustworthy laptop is like having a reliable partner by your side. Making well-informed decisions and staying ahead of market trends become second nature with the right device. However, the quest for a budget-friendly trading laptop t...
Jan 21, 2024 4:00 AM - Parth Sanghvi
Introduction: In the world of financial analysis, a profound grasp of essential profitability metrics is vital. This blog delves into three pivotal metrics—ROE (Return on Equity), ROA (Return on Assets), and Net Profit Margin—offering clear insights without unnecessary complexity. Exploring RO...
May 14, 2024 11:41 AM - Sanzhi Kobzhan
A stock's target price, also known as its fair value, is an indication of what a share can cost based on the company’s forecasted financial statements. It is important to know a stock's fair value to find undervalued stocks with great growth potential. Let's consider how investment analysts calculat...